SUNNYVALE, CA - A new integrated risk management system for hedge funds and other asset managers has been launched by La Meer to prepare for incoming regulatory demands.
La Meer says the software is tailored to mitigate operational risks such as business continuity management, policies and procedures for trading, business operations, risk valuations, and outsourcing risks from third-party service providers, in line with Basel II-defined categories.
The firm says the wider risk aims are to continuously and transparently identify, measure and monitor credit, liquidity, counterparty, regulatory compliance, operational, financial, and business strategy risks.
The software, Grace - IM, is based on the best practice principles of the President's Working Group, the Alternate Investment Management Association and Managed Fund Association's guidelines for 2009.
The firm says the software is in line with recommendations to implement a consistent and enterprise-wide risk management culture for sound governance policies and processes.
"Grace-IM is the result of many years of experience working in global financial markets, as well as a lot of interaction with key thought leaders from the world's leading accounting and consulting firms in the areas of governance, compliance and risk management," says Laxmi Ramanath, La Meer's founder and chief executive.
Chair of the US Securities and Exchange Commission (SEC) Mary Schapiro has said the regulator could broadly supervise what hedge funds can buy and how much they borrow to maximise bets, in addition to plans to make them register to increase regulatory oversight. Schapiro said further restrictions could develop as "situations evolve".
US Treasury secretary Timothy Geithner plans to force hedge funds to register with the SEC, subjecting firms to new disclosure requirements and inspections by agency staff, in response to regulatory investigations over short-selling practices and several major fraud events in the hedge fund industry.